When economists use the term "big tradeoff" when discussing efficiency they are referring to the tradeoff between
A) external costs and external benefits.
B) marginal cost and marginal benefits.
C) producer surplus and consumer surplus.
D) efficiency and fairness.
E) deadweight loss and producer/consumer surplus.

Question

Quizplus · Accepted Answer

The "big tradeoff" refers to the tradeoff between efficiency and fairness. Economists often discuss how policies aimed at increasing efficiency can sometimes lead to outcomes that are perceived as less fair, and vice versa.

When Economists Use the Term "Big Tradeoff" When Discussing Efficiency